selling panic

Selling Panic

The rapid selling of a security by a large number of investors. This increases the supply of the security available for sale while leaving constant or decreasing the demand to buy; this drives down the price. Selling panics occur for a number of reasons. For example, a stock may drop suddenly in price if its company issues an unexpectedly negative earnings report. The panic comes from investors' desire to sell the stock immediately before the price falls even more. See also: Buying panic, Sell-off.

selling panic

A period of rapidly falling stock prices on very large volume as investors, speculators, traders, and institutions attempt to liquidate investment positions without regard to price. Selling panics occur when individuals and institutions believe they must sell securities at once before prices fall further. Compare buying panic.

The government halved the downward limit last month to prevent a selling panic after the opposition parties threatened to recall President Chen Shui-bian over his government's decision to scrap a controversial nuclear plant.

but when mutual fund shareholders hit the panic button and start clamoring for redemption of their shares, the funds have no legal recourse but to come up with the money, and that could trigger a selling panic.

On Monday, the first day of trading since Chen Shui-bian of the opposition Democratic Progressive Party won the presidential election, the local bourse had seen a selling panic which brought the index down 2.

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